Where to stay in Madeira – places and vacation style, advice from personal experience

If you like green mountains and beautiful ocean views from them, include Madeira in your upcoming travel list.

Madeira is an island and archipelago in the Atlantic Ocean, because it is worth it!

Madeira is an autonomous region located off the northwestern coast of Africa and consists of 4 islands. It is a harsh and green place with an epic volcanic origin, which makes it an ideal place for hiking and outdoor activities.

When planning a route to Madeira, it is easy to get confused – where exactly to stay on the island to see its beautiful locations, take several routes in the mountains, and levadas. And also relax on ocean beaches or in natural pools.

Therefore, I have collected the best places to stay depending on your budget, the number of days you will stay in Madeira and your travel style. You’ll also find the best places to stay and things to do in each part of the island.

I recommend you to read: Madeira – Itinerary for the 7 days

What determines where to stay in Madeira

Where to stay during your visit to Madeira depends on some of the goals you set for your trip.

  • Firstly, how much time do you plan to spend on the archipelago?
  • Secondly, what you plan to do during your trip.
  • Thirdly, what tipe of transport do you plan to use to get around Madeira?

If you are going to be in Madeira for less than 4 days, I would suggest staying in the capital, Funchal, for the entire time. Since this city is located in the center of the island, there is a lot to see and do. It is also very convenient to get to other parts of the island by car and public transport.

However, if you are going to stay here for 5 days or more, it is better to choose several bases. This will help you see and do as much as possible without having to constantly travel to and from Funchal.

Here’s how I would recommend planning your trip:

3-4 days in Funchal: Since Funchal is the most convenient place on the island, as well as the largest city, it makes sense to start there and possibly end there if you plan to tour the entire island. The city is full of restaurants, nightclubs and tourist attractions. So there is plenty to do here, apart from all the day trips.

2 days in Santana: After Funchal, and if you like hiking, you can move to Santana for a couple of days of active recreation in the mountains and on the ocean.

2 days in Porto Moniz: to explore the north-western part of Madeira. Here you can swim in the lava pools of Porto Moniz, or on the volcanic sand beach in Seix. See waterfalls, walk through the Fanal forest and many other interesting places.

2 days in Porto Santo: if you are interested in beaches – the best and largest beach in the archipelago is located on the neighboring island of Porto Santo. Plan at least a couple of nights for them.

Plan to visit Madeira for a week to ten days, no less! 7 days was not enough for me.

Below is a little more information about each of these recommended locations.

Funchal is the perfect city for the first visit

The most convenient place to stay in Madeira is Funchal, the capital and largest city of the archipelago. Funchal is located on the south coast and is the best place to stay on Madeira for the first visit. With Funchal as your base, you can reach almost anywhere on the main island in less than an hour (if you are traveling by car).

There are also many accommodation options, historical sites, and natural gardens to explore. There are also many restaurants, so you never have to go far or look for a good place to have a snack or a bar in the evening.

Funchal also has pebble beaches for relaxing by the sea. One of the most popular is Praia Formosa.

Staying in Funchal will also help you overcome the problem of transportation on the island. Despite the fact that Madeira is quite small, public transport here is not very easy to figure out. Because different bus companies go to different parts of the island. They have their own stops and schedules depending on the day of the week.

But from Funchal it is easiest to get to the most interesting places located in the south, east and west of Madeira. There is also a ferry from here to the neighboring island of Porto Santo and water excursions to the Desertas and Selvagens islands. In Funchal you will find many tour companies that will help you travel around the island without a rental car (if you do not want to rent one for some reason).

What to see and do in Funchal:

  • Visit the Botanical Gardens of Funchal, located in the Monte district. There is a cable car from the Funchal waterfront to the top, and you can descend one of the beautiful levadas that lead into the city from Mount Monte.
  • Take a sunrise hike from Pico do Areiro to Pico Ruivo – you can get there from Funchal by car, taxi (or by buying an excursion from local travel agents).
  • Go to the local market Mercado dos Lavradores to experience the smells and tastes of the city. Here you can try and buy various fruits and vegetables, fish and souvenirs.
  • Explore the Old Town and walk along Santa Maria Street to see of street art on the old doors. The old houses and doors are painted by local artists, some of the paintings are very interesting.
  • Take great photos of the Gothic Se Cathedral.
  • Stroll through the gardens and the mineral museum at Monte Palace Madeira.
  • Try the local drink Poncha at the bar or cocktails at the Venda Velha bar.

Funchal – a guide to the capital of Madeira

Hotels and apartments in Funchal:

  • Sea Shell≫ – Apartment in Funchal in a great location with a nice view of the ocean from the balcony. There are some good restaurants nearby and a shopping mall within walking distance. It was good value for money. Free parking available.
  • Social Lodge – Happiness≫ – The accommodation is in a very convenient location, next to a shopping center with everything you need. The bus stop, which you can take from the airport or back, is right across the street. The room is clean, the beds are comfortable.
  • Theos Apartment by LovelyStay≫ – Great location. Near the transport stop, shopping center across the street. The apartment has a large living room and a small bedroom with a comfortable bed. Kitchen with everything you need. Bathroom with bidet and all toiletries. Balcony with ocean view. There is a private parking under the house.
  •  Travellers Pearl by Storytellers – aparthotel in the historic center of Funchal, where we stayed for a few nights. Convenient self-check-in and access by code. I chose this accommodation for its own parking and the ability to prepare breakfast or dinner – there is a kitchen and necessary utensils, as well as a washing machine. Parking in the center of Funchal is a very important option for travelers with a rental car.

Santa Cruz – where to stay in Madeira on a budget

Santa Cruz is a small coastal town on the east coast, close to Funchal and Madeira Airport. It is one of the best places to stay if you are trying to choose the best part of Madeira and not pay more for accommodation than in Funchal.

This charming town has great access to beaches and many attractions, especially if you are traveling around Madeira by car. You can also head to Funchal at any time to explore the big city before returning to a quieter and cheaper base.

What to see and do in Santa Cruz:

  • Admire the magnificent architecture of the Igreja de São Salvador.
  • Relax on the pebble beaches of Praia das Palmeiras and Praia Santa Cruz, provided there are no storms.
  • Watch planes and spotting place near Madeira Airport from the Santa Cruz waterfront.
  • Go scuba diving at Madeira Oceanos – Diving Center.
  • Hike the Levada dos Tornos, which overlooks the town of Santa Cruz.
  • Follow the PR8 route to the easternmost point of Madeira, Cape São Lorenzo. Expect to spend half a day there.
  • Visit the Miradouro do Cristo Rei viewpoint – here you can see a replica of the statue of Christ, like the one in Rio de Janeiro (or the one in Almada in Lisbon).
  • Head to Madeira Water Park to entertain the kids with water slides.

Accommodation in Santa Cruz:

  • Santa Cruz Village Hotel≫ – Good location for a reasonable price. Everything is as it should be in the hotel, there is a swimming pool, a fitness room and a good breakfast. Check-in and check-out are available 24 hours a day and you can leave your belongings after check-out. There is parking, but the number of spaces is limited.
  • Villa Beach Club≫ – The villa has an amazing view of the ocean. The pool is wonderful, quite large, the water is warm even in May. The living area is very bright and is extended by a spacious terrace, which is the perfect place to enjoy a meal in sunny weather.
  • Casa da Vila≫ – The accommodation is very clean, modern and spacious, located 5 minutes walk from the center of Santa Cruz. The rooms are cozy, well furnished and attractive. The beds are very comfortable. The sunny balcony with sea view is the best addition.

Machico – an alternative to Funchal

If you like to stay in an area with many amenities without the hustle and bustle of the city, then Machico is a good choice. It is not as big as Funchal, but still has many restaurants, bars, shops and hotels.

If you are interested in combining active holidays on hiking trails and beaches – Machico can be a very convenient place in Madeira. There are many popular and sometimes strange beaches, as well as the opportunity to enjoy outdoor activities such as swimming and water sports.

What to see and do in Machico:

  • Relax at the popular Praia de Machico.
  • Take in the views from the viewpoint known as Miraduro de Machico.
  • For a quieter beach, try the golden sand of Banda D’ Alem (brought here from the Sahara). Or, for a great alternative, head to the black sand of São Roque.
  • Hike the Levada dos Maroços trail for beautiful views of the Machico terraces.
  • Follow the path to Viewpoint Portela for stunning views from the viewpoint of the same name.
  • Dine at Tasquinha do Pescador, located in the nearby town of Caniçal. It serves delicious fish and seafood, and the prices are reasonable.

Accommodation in Machico:

  • Dom Pedro Madeira≫ – Very cozy place, has its own pool, near the ocean and very convenient when early departure. The hotel is not new, but clean. Located near the beaches of Machico.
  • GuestReady – Peaceful getaway near the beach≫ – apartments in the city center with a large living room, balcony and kitchen. The price is reasonable, and the comfort is at its best. Not far from the beach and the center, there are shops and restaurants. Very convenient location and clean in the apartment.

Calheta – the best area for families

Calheta is located on the southwest (sunny) side of the island and enjoys great weather almost all year round. It has become a popular destination for families due to its sandy beach, which is well protected from the waves.

This is one of the best places in Madeira if you are into windsurfing, canoeing, snorkeling. It is also one of the best places to stay in Madeira and to visit the hiking trails. So if you are ready, lace up your hiking boots and set off to explore the region on foot.

What to see and do in Calheta:

  • Relax with a drink at Bar Calheta Beach.
  • Head to Museu de Arte Contemporânee to admire the art and the views.
  • Visit the sugar cane factory and museum in Calheta.
  • Try the Levadas of Rabacal walking trail, which even beginners can handle.
  • Head to the popular Praia da Calheta beach for a swim in the calm waters and sunbathe on the sand.
  • Walk the Banana Route – RB2 Vereda do Nateiro, which follows a path along the ocean and banana plantations.
  • Visit the Jardim Público da Madalena Do Mar botanical garden.
  • See the Cascata dos Anjos waterfall, which cascades down the mountain directly onto the ER101 road.

Hotels in Calheta

Bluegreen≫ – very clean studio, extremely comfortable bed, incredible ocean view. Convenient for those with a rental car, you can park in front of the house garage. Access to the pool is through the yard, passing the apartment below the one we stayed in. The kitchen is equipped with everything you need for a quick breakfast.

Room in Studio – Discover Magical Calheta≫ – The studio is located 15 minutes from Caleta Beach, equipped with all amenities. There is a garden and a terrace where you can spend pleasant evenings.

Santana is a peaceful town for exploring nature and hiking

For those who plan to focus on hiking and exploring the northeastern part of the island, I recommend booking accommodation in the town of Santana. Unlike Funchal, Santana is mostly populated by locals rather than tourists. However, there are many good hotels. The two types of hotels that exist in Santana are luxury nature resorts and rural tourism stays in converted farmhouses.

What to see and do in Santana:

  • Climb Madeira’s highest peak PR1.2 Pico Ruivo (1861 m) – from Santana there is an easy route to Pico Ruivo (15 minutes by car).
  • If you like hiking, take the Levada Caldeira Verde route.
  • Plan a visit to historical sites – the Faial Fortress boasts an amazing view of the ocean.
  • To the east are beautiful green mountains, between which a road winds with wonderful views. A beautiful section between Porto da Cruz and Santana.
  • The hallmark of Madeira is the bright palheiros houses with triangular reed roofs. You can look for them for free in the very center of Santana. They are located near the local town hall.

Accommodation in Santana:

  • Casas de Campo do Pomar B&B – a lovely hillside complex with mini apartments, each with a terrace and a view of the valley. Breakfast is included, parking is available at the entrance on the road, but it is not a through road and there are plenty of spaces. We stayed here and really enjoyed it.
  • Casa do Ribeiro Frio≫ – Very nice guesthouse, with cleanliness, the smell of fresh linen, a perfect kitchen and a comfortable lounge. There is an observation deck 15 minutes from the hotel, the view is simply incredible.
  • Green Valley Cruzinhas House with Fireplace & BBQ – incredible house overlooking the valley, the terrace offers a stunning view of the mountains and forests. The two-bedroom apartment has a kitchen and all the necessary appliances, a washing machine and a barbecue.

Porto Moniz

Porto Moniz is a charming town in Madeira, located on the northwestern side of the island. If you use this town as a base, you can see all the best viewpoints around in a couple of days and take a couple of interesting routes along the sea or in the highlands.

Porto Moniz is also known for its many local restaurants and cafes. But outside the coastal area (where you can find natural pools and an oceanarium), there is not much to see in Porto Moniz. So plan to get around by car – it is the best transport for this part of the island.

What to see and do in Porto Moniz:

  • Visit the natural lava pools of Porto Moniz, which are one of the best places to swim on the main island. There are free ones located near the Aquarium, and there are more comfortable ones with good infrastructure a little further away. The entrance fee is 3 euros, but it’s worth it.
  • Go to the Aquarium – this is a small but interesting oceanarium. The ticket costs about 8 euros.
  • Look at the bizarre rocks in the sea, which are also called Neptune’s Fingers. They are located near the village of Ribeira Da Janela (15 minutes from Porto Moniz). There is a very beautiful stone beach and a small observation deck with a tunnel.
  • Go to the Fanal forest, which is located on a mountain 40 minutes from Porto Moniz. You will see how the clouds envelop the old laurels, which are hundreds of years old. A very beautiful place and small hiking trails around.
  • Visit the “lost world” that can only be reached by cable car. This Achadas da Cruz – a piece of land on the ocean shore. There are only pieces of vegetable gardens and small summer houses of local residents. And a wonderful stone path along which you can walk along the ocean and huge rocks.

Accommodation in Porto Moniz:

Casa da Grota≫ – Beautiful house, tastefully decorated, has everything you need. Plenty of seating areas inside and out. Well stocked kitchen. Great quiet location 10 minutes drive from the ocean.

The Jolie Apartments – by the Ocean≫ – The location is great, in the center, beautiful view from the window, small apartment, but comfortable. There is a balcony, washing machine, even powder, the bed is very comfortable.

Porto Santo

While the beaches of Funchal are usually small and mostly pebbled, the island of Porto Santo is home to the largest sandy beach in the archipelago. It has white sand and is 9 km long (!!!). If you want to spend a few days at the beach, Porto Santo is the perfect place to stay during such a holiday.

Compared to the main island of Madeira, Porto Santo is very dry (almost desert) and relatively quiet. It is truly a place where you can relax and spend the whole day relaxing on the beach. Or relax, having lunch and drinks in the wonderful but small local restaurants and bars.

There are many hotels on the island and they are much cheaper than on the main island. You can comfortably spend a night in a nice beach resort with a pool for 80 euros or even less (depending on the season).

Hotels in Porto Santo:

  • Charming Beach Villa Porto Santo≫ – Large apartment in excellent condition. Clean and equipped. 10 minutes walk from the center and not far from the beach (by stairs).
  • Sotavento Guest House≫ – The location is fantastic, less than 100 meters from the beach and waves, less than 100 meters from a great supermarket and right in the center of the main town. The penthouse apartment has a stunning 30+ meter long balcony facing south with great views of the sea and mountains. The apartment contains everything you need for cooking, sleeping and doing laundry.

Useful Articles and Links:

Car Rental – Affordable options are always available on the aggregator Rentalcars.com 
Green Card and travel medical insurance – available online at HotlineFinance
Hotel and apartment bookings – Booking.com

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